The Central Bank will permit microfinance institutions to obtain a banking license

The Bank of Russia initiates legislative changes that would allow microfinance institutions (MFIs) in the presence of sufficient capital to obtain a banking license. This was announced by first Deputy Chairman of Bank of Russia Sergey Shvetsov at the XV national conference on microfinance and financial inclusion, the correspondent of RBC.

“Those MFIs that increased their capital, are interested in expanding their own operations, I want to go into the status of banks to access money of citizens — can do, will be able to obtain appropriate licenses and to expand opportunities for business,” — said Shvetsov.

He also noted that in relation to banks, the Central Bank is preparing a novels associated with the emergence of the third type of credit institutions — the so-called banks with a base license, which will have a limited set of active and passive operations. According to him, this will significantly simplify the system management of such banks, which in turn will reduce regulatory requirements.

“We want to create a continuous chain between the two types of MFIs and three types of credit institutions. To and banks could become MFIs and swim at the vertical of equity. And depending on the selected license will be implemented by the regulatory burden. Such a mechanism would allow to stay in business for those banks that are not able to raise capital,” — said Shvetsov.